China is undergoing a process of liberalising its economy, and as the market opens up, new contracts will be launched and the hegemony of the dollar in commodity trading is under threat says Newedge’s John Browning.
China is undergoing a process of liberalising its economy, and
as the market opens up, new contracts will be launched to meet
the demand, says Newedge’s John
As China in recent years moved to a for-profit economic model,
expansion was often restricted by regulation to a narrow range
of state-owned companies. The strength of regulation arguably
led the development, profit and income distribution throughout
the Chinese economy to become uneven.
To address these issues within the Chinese economy we can
expect further liberalisation and a lighter regulatory touch.
It seems every day further changes are being made; the recent
widening of the trading range around the USD Renminbi exchange
rate from 0.5% to 1.00% is the most prominent.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |